Central Banking

BoJ to implement RTGS for foreign cbank JGB sales

JAPAN - The Bank of Japan said it will improve its infrastructure to enable Japanese government bond sales by foreign central banks to be settled under the real-time gross settlement system.

Currently, all bond sales and purchases by a foreign central bank are settled at 0600 GMT (2:00 a.m. EDT) instead of being settled immediately as most trades are since the RTGS system was implemented at the beginning of 2001.

Bond sales by a foreign central bank is one of the major causes of illiquidity in